Ogra okays up to 8% cut in gas tariffs; final decision with govt
“Ogra proposed lower average tariffs for SNGPL and SSGCL as part of its annual review.”
Key points
- Ogra proposed lower average tariffs for SNGPL and SSGCL as part of its annual review.
- Any change in consumer prices now hinges on the federal government’s notification.
Pakistan’s Oil and Gas Regulatory Authority (Ogra) approved a reduction of up to 8% in natural gas tariffs for the current fiscal year, subject to the federal government’s final notification.
In its determination of revenue requirements for Sui Northern Gas Pipelines Limited (SNGPL) and Sui Southern Gas Company Limited (SSGCL), Ogra proposed revised average tariffs of Rs1,804.08 per mmbtu for SNGPL and Rs1,549.41 per mmbtu for SSGCL—reflecting cuts of around 3% and 8%, respectively.
The regulator said the adjustment follows cost rationalisation and incorporates the impact of deferred cargoes at Pakistan LNG Limited, to the benefit of end users. It also booked specified amounts against prior shortfalls to curb the buildup of circular debt in the gas sector.
Ogra has asked the federal government for advice on category-wise sale prices. Until any revised rates are notified, existing consumer prices will remain in force.
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